EM ASIA CREDIT: Adani Ports: Focus on governance
(ADSEZ, Baa3neg/BBB-pos/BBB-neg)
"*ADANI GREEN CHAIRMAN’S LETTER TO SHAREHOLDERS" - BBG
"*ADANI TO ACCELERATE INNOVATION, INVEST IN INFRASTRUCTURE" - BBG
"*ADANI TO FURTHER STRENGTHEN GOVERNANCE STANDARDS" - BBG
Adani Group chairman Gautam Adani indicated in a letter to shareholders that, following the accusations by short-seller Hindenburg Research and partial clearance by India’s securities regulator SEBI of some of those allegations, the company will further enhance its governance practices. This is a small positive for credit spreads, with the Adani Ports complex currently trading a few basis points wider at the short end.
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EUROZONE T-BILL ISSUANCE: W/C 25 August
Germany, France, Austria and Italy are due to sell bills this week. We expect issuance to be E18.8bln in first round operations, up from E14.8bln last week.
- This morning, Germany will look to sell E2bln of the 3-month Nov 19, 2025 Bubill and E3bln of the 9-month May 13, 2026 Bubill.
- This afternoon, France will look to issue up to E7.8bln of 13/26/28/50-week BTFs: E2.8-3.2bln of the 13-week Nov 26, 2025 BTF, E0.2-0.6bln of the 26-week Feb 25,2026 BTF, E1.6-2.0bln of the new 28-week Mar 11, 2026 BTF and E1.6-2.0bln of the 50-week Aug 12, 2026 BTF.
- Tomorrow morning, Austria will look to come to the market with E1bln of the 2-month Oct 30, 2025 ATB and E2bln of the new 3-month Nov 27, 2025 green ATB.
- Finally on Wednesday morning, Italy will look to sell E3bln of the 5-month Jan 30, 2026 BOT.
EUROSTOXX50 TECHS: (U5) Trend Needle Points North
- RES 4: 5575.00 High Mar 3 and a major resistance (cont)
- RES 3: 5568.00 High Mar 6
- RES 2: 5526.00 High Mar 19 / 20 (cont)
- RES 1: 5522.00 High Aug 22
- PRICE: 5487.00 @ 06:19 BST Aug 25
- SUP 1: 5409.83 20-day EMA
- SUP 2: 5370.47 50-day EMA
- SUP 3: 5280.00 Low Aug 7
- SUP 4: 5249.00 Low Aug 5
The trend set-up in Eurostoxx 50 futures is bullish and the contract traded to a fresh short-term cycle high last week. The recent print above the May and July highs strengthens a bull theme and signals scope for a climb towards 5575.00, the Mar 3 high (cont) and key resistance. Moving average studies are in a bull-mode position, highlighting an uptrend. Support to watch lies at 5370.47, the 50-day EMA
SCHATZ TECHS: (U5) Trend Signals Remain Bearish
- RES 4: 107.300 Round number resistance
- RES 3: 107.245 High Jul 24
- RES 2: 107.164 50-day EMA
- RES 1: 107.086 20-day EMA
- PRICE: 107.020 @ 06:02 BST Aug 25
- SUP 1: 106.985 Low Aug 15
- SUP 2: 107.964 1.618 proj of the Jul 7 - 11 - 22 price swing
- SUP 3: 106.928 1.764 proj of the Jul 7 - 11 - 22 price swing
- SUP 4: 106.870 2.000 proj of the Jul 7 - 11 - 22 price swing
The trend outlook in Schatz futures is unchanged, a bearish theme remains intact. The contract traded lower on August 15, resulting in a print below 106.990, the Aug 12 low. A clear breach of this level would resume the downtrend and mark an extension of the price sequence of lower lows and lower highs. This would open 106.964, a Fibonacci projection. Initial resistance is 107.086, the 20-day EMA.
